Session 2 Overview and History of Process Industry

Today’s Agenda –Growth and development of the industry –Impact of the industry on the community and the economy –Responses of the industry to global issues –Regulation of the Industry –New terminology

The Process Industry Process Industry Pharmaceuticals Pipeline Chemical RefiningFood/BevPulp/Paper Oilfield Energy Mining Non- renewable AlternativeNuclear

Terms Process Process Industry Process Unit Refining Feedstock Petrochemicals

Early Uses of Petroleum What are some of the earliest uses of petroleum you can think of?

Early Uses of Petroleum Egypt - help preserve mummies, seal pyramids, and China Persia Sumatra (Indonesia) Native Americans Medicine shows

Petroleum Engineering 101 Activity Using the picture on the previous slide determine the following: –How could you determine where to find the oil and gas? –How would you get the oil and gas to the surface? –Is the oil and gas pure? If not, what needs to be done to improve the quality? –How would you store the oil and gas on site? –How would you transport the oil and gas to processing plant? Answers should take into consideration SHE, technology, and economics

In Search of a Market 1850: First refinery 1853: Kerosene 1859: First oil well in Titusville, PA 1865 First pipeline in Titusville, PA 1869: New products: Vaseline, candle wax, gum 1885: First gasoline-powered automobile

Refining Processes 1850: First refinery 1860: Fifteen refineries producing naphtha, kerosene, heavy oils and tars 1913: Thermal cracking to produce gasoline 1936: Catalytic cracking to produce gasoline 1940: Catalytic reforming to increase octane

Chemical Processing Late 1700s s: Industrial revolution, beginning of chemical industry 1800s: Demand for manufactured consumer products increases Early 1900s: Britain and U.S. dominate industry Environmental concerns Key processes Examples of end products

War, Petroleum, and Chemicals WWI and WWII dramatically increase importance of processing industries Industry advances help Allied victories –Synthetic rubber –Plastic –Rayon & Nylon –Higher octane fuels –Nuclear bombs

The 1950s s Post WWII Booms –automobile travel –babies - consumer products 1950s: U.S. and European domination of petroleum business 1960s: Foreign nationalization 1970s: Oil glut and Arab Oil Embargo

Pollution - Crisis and Response Warning signs “Critical Mass” of chemicals in the environment Growing awareness of ecological damage Responses

Regulation of the Industry Major Regulatory Agencies EPA –Clean Air Act (1970) –Clean Water Act (1977) –Resource Conservation Recovery Act (1980) OSHA - NIOSH DOT NRC Homeland Security/Coast Guard FDA

Today’s Process Industry Impact on Gulf Coast Region Process industries responsible for about 50% of Houston’s economy Employs 60,000 workers Needs 4,800 – 6,000 new hires/year Jobs have become more complex

Current Trends Consolidations in industry –Mergers and acquisitions –Reduction of duplicate processes –Emphasis on keeping costs low Impact on Process Technicians –Higher expectations, more responsibility –More education and training needed –More proactive work strategies

Trends for the Future 1. Serious foreign competition 2. More use of computers, advanced control simulation, process automation 3. Rapid technological change 4. Partnerships between education and industry 5. More regulation 6. More legal issues 7. More responsibility, higher expectations of workers 8. More education/training 9. Less supervision 10. More smart jobs, 11. Job sharing 12. Gender equity and diversity issues